Core Viewpoint - The new tax policy on gold, announced by the Ministry of Finance and the State Taxation Administration, aims to differentiate between investment and non-investment demand for gold, leading to significant market reactions and price fluctuations in gold products [2][5]. Market Reactions - The gold market has shown a clear division, with investment gold bars experiencing price increases and some products being taken off the shelves. For instance, the price of investment gold bars at certain stores has risen by over 100 yuan per gram compared to pre-policy levels [2][3]. - Different brands exhibit varied strategies; for example, Chow Tai Fook maintains its online prices while others like Century Origin have suspended sales of investment gold bars entirely [3]. Price Adjustments - The price of diamond-studded gold jewelry is also being adjusted due to rising raw material costs and the new tax policy. Some brands are temporarily halting sales to reassess pricing structures [4]. - The overall increase in gold prices has a cascading effect on related products, with some brands reporting price hikes of 5%-8% for gold jewelry [7]. Consumer Impact - The new tax policy has led to increased costs for consumers, particularly for those purchasing investment gold through non-exchange channels, where additional VAT burdens are passed on to buyers [6][7]. - Consumers are advised to consider purchasing gold through banks or exchange platforms to benefit from lower tax burdens and better pricing [7]. Tax Policy Details - The new tax policy specifies that from now until the end of 2027, transactions involving standard gold through the Shanghai Gold Exchange will be exempt from VAT, which is expected to influence market dynamics significantly [8]. - The policy also differentiates between investment and non-investment gold, applying different VAT treatments based on the nature of the transaction [8].

Core Viewpoint - The new tax policy on gold, implemented by the Ministry of Finance and the State Taxation Administration, aims to differentiate between investment and non-investment demand for gold, leading to immediate market reactions and price fluctuations in gold bars and jewelry [1][8]. Market Reactions - The gold investment bar market has shown a clear division, with prices increasing in some stores while others have suspended sales or reduced offerings [3][5]. - For instance, the price of investment gold bars at Shandong Gold increased by over 100 yuan per gram to 1020 yuan per gram, while other brands like Dream Gold Garden offered temporary discounts [3][5]. Online Sales Strategies - Online sales strategies vary significantly among brands, with some like Chow Tai Fook maintaining prices consistent with physical stores, while others have drastically reduced their offerings or suspended sales altogether [5][8]. - For example, Chow Tai Fook's 10g gold bar is priced at approximately 11,200 yuan, while other brands have removed most investment gold products from their online platforms [5]. Impact on Jewelry Market - The price adjustments in the investment gold bar market have also affected the diamond-studded gold jewelry segment, with some brands pausing sales to reassess costs due to rising raw material prices and tax policy changes [7][8]. - The price of diamond-studded gold jewelry is influenced by various factors, including gold raw material costs, diamond costs, processing fees, and brand premiums [7][13]. Challenges for Small Gold Merchants - Small gold merchants face significant challenges due to increased tax costs and the inability to access the same resources as larger institutions, which may lead to squeezed profit margins [12]. - The new tax policy requires merchants to establish better sales records and tax management systems, increasing compliance costs [12]. Consumer Cost Variability - The cost of purchasing gold for consumers will vary based on the type of gold and the purchasing channel, with investment gold purchased through formal channels benefiting from tax exemptions [12][13]. - For jewelry, while raw material costs have risen, the overall impact on prices is limited due to the significant portion of costs attributed to processing and brand premiums [13].